Department Stores, Golf Concerns Rise Amid Endemic and Recession... "Solving with Premium"

Concerns Over Golf Popularity Decline Amid Overseas Travel Normalization and Economic Downturn
Shinsegae Gangnam Store Focuses on Premium with Golf Specialty Hall Opening

Shinsegae Department Store Gangnam Branch Golf Shop Storefront View

The department store industry is strengthening premium golf brands to attract customers with high purchasing power. As the golf population, which experienced explosive growth during COVID-19, is expected to shrink somewhat due to the normalization of overseas travel following the endemic transition and economic recession, the industry is aiming for premiumization as a solution.

According to the industry on the 25th, Shinsegae Department Store unveiled a 300-pyeong (approximately 991 square meters) premium golf specialty hall on the 7th floor of its Gangnam branch on the 17th. The golf specialty hall, which opened after two months of renovation starting in December last year, revamped 22 existing brands and added 6 new brands, totaling 28 brands.

Shinsegae Department Store plans to actively attract customers by gathering a large number of premium brands, including the world's first introduction of 'Boss Golf' in the golf specialty hall. In particular, the hall features a studio-style hitting room with a lounge concept to enhance customer attraction. The hitting room is equipped with the TrackMan ball trajectory tracker, which provides systematic and professional swing analysis, helping golfers find clubs that suit them.

The popularity of golf, which heated up during COVID-19, continues even after the transition to an endemic, and department store golf wear sales have shown steady growth. Hyundai Department Store's golf product sales increased by 38% last year compared to the previous year. Despite a high growth rate of 66% in 2021, the growth trend has continued. Especially, the sales growth rate of premium golf brands was 49%, significantly surpassing the overall growth rate. During the same period, Lotte Department Store and Shinsegae Department Store also saw related sales increase by 35% and 34%, respectively.

Although stable sales growth continued until last year, this year is expected to be a year testing the growth of golf brands. During COVID-19, golf users surged mainly among people in their 20s and 30s, rapidly increasing related sales, but this year, with the normalization of overseas travel due to the endemic transition, a decline in the golf population is expected. Additionally, the economic downturn is expected to somewhat dampen demand for high-cost sports, supporting voices that growth will slow.

The department store industry plans to overcome the crisis by focusing on premium brands and content rather than simply expanding stores, and by securing operational efficiency through customized golf brand entries according to stores and commercial districts. An industry official said, "Although growth has somewhat slowed recently due to the normalization of overseas travel, sales of premium golf brands remain high," adding, "With the endemic, people in their 20s and 30s are expected to diversify their interests with other outdoor activities, and customers with high purchasing power will become the mainstream, so we plan to strengthen product planning centered on premium brands."

Lotte Department Store introduced more than 10 new premium golf wear stores last year alone, including 'PXG (Pyeongchon·Jeonju)', 'Malbon (Incheon·Nowon)', 'Amazing Cre (Jeonju·Changwon)', and 'Lanvin Blanc (Jamsil·Busan Main Branch)'. Especially, in Dongtan branch, it opened the 'Callaway Performance Center' in September last year, the first in the distribution industry to offer club fitting services. Kim Do-hoon, Lotte Department Store's golf buyer, said, "Customer needs for golf wear are diversifying," and added, "Reflecting this demand, we plan to introduce even more diverse premium golf brands this year."

Hyundai Department Store is also conducting new entries and renovations of premium golf brands. The Mokdong branch began renovating its golf store on the 15th, and on the 9th of next month, premium brands such as 'G/FORE' and Lanvin Blanc will be newly introduced. Earlier, on the 15th, the Pangyo branch opened new stores including 'A.P.C. Golf' and 'Vice Golf'.